That is hard to say. I think your big problem is the settings- those should work. Only thing I can say is double check your dip switches. Then keep trying the setup. It could just be an issue with your timing. I believe you need to remove the disk from the wii, turn it off and back on, then push eject 3 times or until the game cube screen appears.
For the disk, what speed did you burn it and did you verify it.
Where did you purchase the wasabi, from wiihacks sponsor or else where?